Malaysia Trade Union Case Study

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Before Malaysia’s independence, the workers have started to form groups like unions to protect their rights and welfare. During the colonial economy when British came to Malaya, a lot of labours were imported from China and India. However, the wages of this growing group of imported employees were low and the working conditions were abysmal. In the late 1930s, labour unrest became one of the major concerns for employers. The welfare of the workers was not taken seriously by the employers and they decided to fight against it. By 1940, the situation became worse and the government introduced a legislation – Trade Union Enactment to solve the problem. However, there was the outbreak of World War II. The British forces withdrew from Malaya, and …show more content…

A mere nine per cent of the nation's 11 million workers are unionized and this figure is far from that of nations like Japan, the United Kingdom and Singapore.” From year 2005 until today, the population and the demand of labour were rising but the number of employees unionized was on a decline trend. This is a serious challenge faced by Malaysian Trade Union. One of the issues faced by Malaysian trade union is that some industries are virtually unrepresented by trade unions. Employees in these industries will not be protected by the trade unions. Besides, some of the unions are too small to be effective. The particular union will represent a lower bargaining power. Moreover, as the largest single contributor to exports in the Malaysian economy, the electronics industry has long been without any trade unions. This is a challenge faced by the employees and Malaysian trade unions. This is mainly cause by an historical ban on unionization in this industry from the 1970s to the early 1990s. “Malaysian electronics workers are not only abused but are not allowed to form unions to fight for their rights, says Malaysia's main labour group amid a report on widespread abuses in the country's key manufacturing sector.” – The Malaysian Insider 19 September, …show more content…

This shows that the importance of trade unions have become a greater concern for the employers and employees in the nation. More trade unions are formed to maintain the beneficial employer-employee relationships and protect the rights and welfare of the employees. Meanwhile, the total number of unionized employees also increased from 764,881 to 918,673 since 2001 until September of 2014. The awareness of the need of unionization has improved throughout the years. More employees join unions and embrace the rights they

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